Broadcom also promotes ‘circular finance’… “Promoting procurement of 67 trillion won to purchase open AI chips”

(Seoul = Yonhap News) Reporter Joo Jong-guk = The Wall Street Journal (WSJ) reported on the 7th (local time), citing sources, that Broadcom has been discussing with investment companies such as Apollo and Blackstone to provide funding for OpenAI to purchase customized AI chips that the two companies are jointly developing.

Sources said the amount of financing was more than $50 billion (about 67 trillion won). However, negotiations are still in the early stages and the size of the deal may change.

According to one source, Broadcom's funding for OpenAI could include building multiple gigawatts (GW) of OpenAI chip production capacity. This contract is expected to be concluded within the year.

This contract comes one year after OpenAI and Broadcom announced a partnership to build 10GW by jointly developing OpenAI's customized chips using Broadcom's networking technology.

Under the agreement, Broadcom will custom develop and supply AI chips and systems designed by OpenAI, the two companies explained at the time.

Broadcom added that it plans to deploy AI accelerators and network systems in the data center being built by OpenAI starting from the second half of 2026 and until the end of 2029.

Previously, Broadcom guaranteed $42 billion (approximately KRW 57.1 trillion) in the process of receiving a loan worth $60 billion (approximately KRW 81.5 trillion) provided by Antropic as lease fees for Google Tensor Processing Unit (TPU).

Accordingly, the Financial Times (FT) reported on the 5th that creditors such as Bank of America (BofA), Citigroup, and Morgan Stanley, which agreed to provide loans, have begun selling $42 billion (approximately KRW 57.1 trillion) of senior secured loans guaranteed by Broadcom to other investors.

Nvidia's competitor, Broadcom, appears to be following Nvidia's financial support for customers, which has been criticized for its 'circular finance'.

Nvidia signed a contract last August to provide a guarantee for up to $105 billion (approximately KRW 149 trillion) of the costs required to lease a data center under construction in Peak County, Ohio, by OpenAI. This data center is equipped with NVIDIA AI chips.